Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Richard Hoss - Roth Capital Partners LLC.
Richard Hoss - Roth Capital Partners LLC
Hank, I’ll start with you. Just a couple more of the granular questions and then I’m going to ask some larger big picture at the end. First the gross margin strength for the quarter, it looked like just looking at the operating income from both segments, it looks like both segments had very strong gross margin. Can you break it out or at least give us a little bit more detail on you know where the strength came from and why?
Henry G. Schopfer III
You know the trend on the gross margins has been in the backlog, Rick. And so that has continued. There’s really no, even though we’ve had a decline in the backlog, the margins in the backlog have continued to withhold themselves. Now there’s a couple of competing factors there. One is there is more pricing pressure in the marketplace on both product lines, but offsetting that is the efforts that we’re doing on as we mentioned earlier on cost containment is keeping those margins in line for us. That’s really where we are. We would expect it you know hopefully to continue with that sort of margin kind of line. So we have to balance out the pressures in the marketplace with things that we can do internally on the cost side.
Richard Hoss - Roth Capital Partners LLC
But don’t necessarily expect a 35% gross margin you know for the remainder?
Henry G. Schopfer III
No. I still look at us in that 32, 34% range perhaps even in this current market more in the lower 32 side of it.
Richard Hoss - Roth Capital Partners LLC
Did you have a foreign exchange benefit this quarter?
Henry G. Schopfer III
I think it’s a negative in this quarter.
Richard Hoss - Roth Capital Partners LLC
Okay.
Henry G. Schopfer III
I don’t think it’s a big number but it’s somewhat a little negative.
Richard Hoss - Roth Capital Partners LLC
And then do you have D&A handy?
Henry G. Schopfer III
G&A?
Richard Hoss - Roth Capital Partners LLC
D&A. I’m sorry, depreciation and amortization.
Henry G. Schopfer III
I thought you were coming up with a new accounting term there for us. Do I have it handy?
Richard Hoss - Roth Capital Partners LLC
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